Approved Code No. 347-Supplement No. 4 Registry No. 1502-03 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR C·OMPETITION 

FOR THE 

SMALL LOCOl'dOTIVE 

MANUFACTURING INIDUSTRY 

AS APPROVED ON MAY 5, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 347-Supplement No. ' 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

SMALL LOCOMOTIVE MANUFACTURING 

INDUSTRY 

As Approved on May 5, 1934 

ORDER 

SUPPLEMENTARY ConE OF FAIR CoMPETITION FOR THE SMALL 

LOCOMOTIVE MANUFACTURING INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Supple7 

n1ental Code of Fair Competition for the Small Locomotive Manufacturing Subdivision of Machinery and Allied Products Industry, 

and hearings having been duly held thereon and the annexed report 

on said Supplemental Code, containing findings with respect thereto, 

having been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30 

1933, and otherwise; do hereby incorporate by reference said annexed 

report and do find that said SuJ?plemental Code complies in all 

respects with the pertinent proviswns and will promote the policy 

and purposes of said Title of said Act; and do hereby order that 

said Supplemental Code of Fair Competition be and it is hereby 

approved on condition that the Associated Builders of Small Locomotives shall amend its Articles of Association to the satisfaction of 

the Administrator within the time set forth in the Order of the 

Administrator, dated April 26, 1934, which order extended the 

original period of thirty (30) days set forth in the Executive Order 

of March 17, 1934, approving the Basic Code of Fair Competition 

for the Machinery and Allied Products Industry. 

Approval recommended: 

A. R. GLANCY, 

HUGH S. JOHNSON, 

Aamin.istrator for lndwstrial Recovery. 

Division Administrator. 

wASHINGTON, D.C., 

May 5, 1934. 

G6978°----544-28----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House, 

Srn: This is a report on the Supplemental Code of Fair Competition for the Small Locomotive Subdivision of the Machinery and 

Allied Products Industry, public hearing having been conducted 

thereon in Washington, D.C., December 21, 1933, in accordance with 

the provisions. of Title I of the National Industrial Recovery Act. 

GENERAL STATEMENT 

The Associated Builders of Small Locomotives being truly representative of this Subdivision of the Machinery and Allied Products 

Industry, have submitted a Supplemental Code of Fair Competition 

to the Basic Code for the Machinery and Allied Products Industry 

approved by you March 17, 1934. The Small Locomotive Industry 

is a capital goods industry being engaged in the manufacture for 

sale of locomotives of 1200 horse power or less, and/or parts thereof. 

ECONOMIC EFFECT 

This Subdivision suffered to a very great extent from the effects 

of the depression. 

Production dropped from $6,714,000 in 1929 to about $1,009,000 

in 1933, a decline of 85 per cent. 

Employment suffered also declining from a total of 1318 persons 

in 1929 to 429 in June, 1933, a decrease of 67.4 per cent. 

The average hours per week per factory wage earner decreased 

from 48.8 hours in June, 1929, to 28.4 hours in October, 1933 a 

loss of 41.8 per cent. The average rate per hour for factory workers 

was 61.2 cents in June, 1929, 48.9 cents in June, 1933, and 57.3 cents 

in October, 1933, showing decreases from June, 1929, of 20.1 per 

cent in June, 1933, and 6.4 per cent in October, 1933. Average 

weekly earnings for factory workers declined from $29.90 in June, 

1929, to $16.28 in October, 1933, or a decrease of 45.6 per cent. 

The President's Reemployment Agreement effected improvements 

in both factory employment and payrolls. The Code should increase 

factory employment about 8.8 per cent and factory payrolls approximately 2.7 per cent over the corresponding figures of June, 1933. 

FINDINGS 

The Deputy Admini trator in his final report to me on said 

Supplemental Code having found as herein set forth and on the 

basis of all the proceedings in thi matter: 

(2) 
3 

I find that: 

(a) Said Supplemental Code is well designed to promote the 

policies and purposes of Title I of the National Industrial Recovery 

Act, including removal of obstructions to the free flow of interstate 

and foreign commerce which tend to dimjnjsh the amount thereof 

and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the 

trade groups, by inducing and maintaining united action of labor 

and management under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting 

the fullest possible utilization of the present productive capacity of 

industries, by avoiding undue restriction of production (except as 

may be temporarily required), by increasing the consumption of 

industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unemployment, by improving 

standards of labor, and by otherwise rehabilitating industry. 

(b) Said Subdivision normally employs not more than 50,000 

employees; and is not classified by me as a major industry. 

(c) The Supplemental Code as approved complies in all respects 

with the pertinent provisions of said Title of said Act, including 

without limitation Subsection (a) of Section 3', Subsection (a) of 

Section 7, and Subsection (b) of Section 10 thereof; and that the 

applicant group is an industrial group truly representative of the 

aforesaid Subdivision of the Industry; and that said group imposes 

no inequitable restrictions on admission to membership therein. 

(d) The Supplemental Code is not designed to and will not permit monopolies or monopolistic practices. 

(e) The Supplemental Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate 

against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of said 

Supplemental Code. 

For these reasons, therefore, I have approved this Supplemental 

Code on condition that the Associated Builders of Small Locomotives 

shall amend its Articles of Association to the satisfaction of the Ad· 

ministrator within the time set forth in the Order of the Administra· 

tor, dated A.pril26, 1934, which order extended the original period of 

thirty (30) days se~ forth in the :F?xecutive Q~der of March 17) ~934, 

approvrng the Basic Code of Fair Compebtwn for the Machlnery 

and Allied Products Industry. 

Respectfully, 

MAY 5, 1934. 

HUGH s. JOHNSON, 

Administrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE SMALL LOCOMOTIVE MANUFACTURING SUBDIVISION 

A DIVISION OF THE MACIDNERY AND ALLIED PRODUOTS INDUSTRY 

ARTICLE I-Pmu>OSES 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Supplemental National Industrial Recovery Code for the Small Locomotive 

Manufacturing Subdivision of the Machinery and Allied Products 

Industry, and taken together with the National Industrial Recovery 

Code of the Machinery and Allied Products Industry, to which it is 

a supplement, shall be the standard of fair competition for this 

Subdivision and shall be binding on each employer therein. 

ARTICLE II-DEFINITIONS 

"Applicant" means the Associated Builders of Small Locomotives, 

a trade organization, all members of which are engaged in the 

manufacture for sale of the products of the Small Locomotive Manufacturing Subdivision of the Machinery and Allied Products Industry, which organization is truly r epresentative of this Subdivision. 

"Industry" means the Machinery and Allied Products Industry 

as defined in its National Industrial Recovery Code as approved by 

the President, and ns such Jefinition may front time to time be 

amended. 

"Subdivision" means this Small Locomotive Man~facturing Subdivision of the Machinery and Allied Products Industry as defined 

and set forth in Article II of the National Industrial Recovery Code 

of the Machinery and Allied Products Industry, as follows: 

"'Small Locomotive Subdivision ' means the manufacture for sale 

and selling of locomotives of 600 horsepower or less, and/or parts 

thereof, and includes all those engaged in such manufacture for sale: 

locomotives of more than 600 horsepower, but not to exceed 1200 

horsepower capacity and/ or parts thereof may be manufactured for 

sale and sold by either this Subdivision or the Locomotive Manufacturing Subdivision under this Code; provided, however, that such 

locomotives propelled by electric motors, including parts thereof for 

use therein, may be manufacture l for sale and sold either by members of this Subdivision under this Code or by members of the Electrical Manufacturing Industry under its Code. 'Horsepower' means 

the figure arrived at by multiplying tractive effort (taken at that 

speed at which maximum horsepower will be produced ) by the speed 

in miles per hour and dividing that result by 375." 

"Code" means the National Industrial Recovery Code of the Machinery and Allied Products Indu try as approved by the President 

and as from time to time amended. 

(4) 
5 

"Person" means a natural person, a partnership, a corporation, an 

association, a trust, a trustee in bankruptcy, a receiver or other 

entity. 

"Employer" means any person engaged in this Subdivision of the 

Industry either on his own behalf or as an employer of labor. 

"Employee" means anyone who is employed in the Subdivision 

by any such employer. 

" The Act " means Title I of the National Industrial Recovery 

Act. 

" The President " means the President of the United States. 

" The Administrator " means the Administrator for Industrial 

Recovery. 

" Basic Code Authority " means the Code Authority for the Maehinery and Allied Products Industry as constituted by the Code. 

" Code Authority " means the Code Authority constituted by this 

Subdivision, as provided by the Code and by this Supplemental 

Code. 

"Group Code Authority" means the Code Authority for any 

group or classification of products within this Subdivision, constituted under the authority of Article V of this Supplemental Code. 

ARTICLE III-ADOPTION OF EMPLOYMENT PROVISIONS OF CODE 

The following Articles of the Code, viz :. Article III, " Hours "; 

Article IV, "Wages"; and Article V, "General Labor Provisions", 

are hereby made a part of this Supplemental Code, with the same 

effect as if they were written into this Supplemental Code. 

ARTICLE IV-ADOPTION OF OTHER PROVISIONS OF CODE 

The following Articles of the Code, viz : Article VI, "Administration," to the extent that it shall be applicable to the administration 

of this Supplemental Code as such or as it may hereafter be administered as an autonomous Code; Article VIII, "~1odifications and 

Termination "; Article IX, "Withdrawal"; Article X, "Monopolies"; and Article XI, "Effective Date" are hereby made a part 

hereof and with the same effect as if they w.ere written into this 

Supplemental Code. 

ARTICLE V-ADMINISTR..-\TION 1 

(a) A Code Authority for this Subdivision is hereby constituted 

to administer, supervise and facilitate the enforcement of the Code 

and of this Supplemental Code in the manner and to the extent 

provided in the Code and in this Supplemental Code. This Code 

Authority is to consist of-

(1) The Executive Committee of Associated Builders of Small 

Locomotives consisting of not less than three (3) nor more than 

seven (7) members. 

(2) One additional member to be elected in any fair manner with 

the approval of the Administrator by employers in this Subdivision 

entitled to vote thereon as hereinafter provided but who are not 

1 See paragraph 2 of order approvin~ this Code. 
6 

members of the Applicant, if so desired by such non-members. The 

administrator may at his discretion appmnt one additional member 

(without vote and without expense to the Industry). 

(b) Any employer in this Subdivision shall be eligible for membership in the Associated Builders of Small Locomotives. 

(c) The employers within this Subdivision, at a meeting called 

for that purpose within sixty (60) days after the effective date, may 

adopt rules and regulations to govern the activities and procedures 

o£ Code Authority which are not inconsistent with the provisions 

of the Code of the Machinery and Allied Products Industry or o£ 

this Supplemental Code or of the Act. They may also authorize 

the Code Authority to employ such personnel as it may deem necessary. Such. action may be amended from time to time by a vote of 

the emplo~ers within this Subdivision taken in the manner· hereinafter provided. 

(d) Any employer in this Subdivision shall be entitled to vote 

at meetings of employers and, subject to Subsection (2) of Subdivision (a) of this Article, at the election of the one additional member 

of Code Authority and share in the benefits of the activities of Code 

Authority and may participate in any endeavors of Code Authority 

in the preparation o£ any amendments or revisions of or additions 

or supplements to this Supplemental Code, by paying or agreeing 

to pay, as and when assessed, his or its proper pro rata share of the 

reasonable cost o£ creating and administering this Supplemental 

Code, as determined by Code Authority. Each employer shall pay 

his or its proper pro rata share o£ such cost as so determined. 

(e) At meetings of employers, each emfloyer shall have the right 

to cast one vote and the concurring vote o a majority of the employers present in person or by proxy shall, except as herein otherwise 

provided, be necessary to carry any question. 

(£) Employers in this Subdivision having a common interest and 

common problems may be grouped by Code Authority for administrative :purposes. There shall be a Group Code Authority approved 

or appOinted by Code Authority for each such Group. 

(g) I£ formal complaint is made to Code Authority that provisions o£ this Supplemental Code have been violated by any employer, Code Authority or the proper Group Code Authority may 

cause such investigation or audit to be made to the extent permitted 

by the Act, as may be necessary. I£ such investigation is made by 

Group Code Authority, it shall report the results of such investigation or audit to Code Authority for action. 

ARTICLE VI-TRADE PRACJTICES 

(1) No employer shall secretly directly or indirectly offer or make 

any payment or allowance of a rebate, refund, commission, credit, 

unearned discount, or excess allowance, whether in the form o£ 

money or otherwise, nor shall an employer secretly offer or extend 

to any customer any special service or privilege not extended to all 

customers of the same class, for the purpose o£ influencing a sale. 

(2) No employer shall publish advertising (:vhetl:er p~inted, 

radio, display, or o£ any other nature), wh1ch 1s m1sleadmg or 

inaccurate in any material particular, nor shall any member m 
7 

any way misrepresent any goods (including but without limitation 

its use, trademark, grade, quality, quantity, origin, size, substance, 

character, nature, finish, material, content or preparation) or credit 

terms, values, policies, services, or the nature or form of the business 

conducted. , 

(3) No employer shall publish or circulate unjustified or unwarranted threats of legal proceedings which tend to have the effect 

of harrassing competitors or intimidating their customers. 

ARTICLE VII-MoniFICA TIONS 

(a) As provided by Section 10 (b) of the Act, the President may 

from time to time cancel or modify any order, approval, license, rule 

or regulation issued under Title I of the Act. 

(b) Any amendments, additions, revisions, or supplements of this 

Supplemental Code, proposed by Code Authority and authorized 

by the affirmative vote of two-thirds of the employers shall be in full 

force and effect upon approval by the Administrator. The eligibility 

requirements, method, and effect of such voting shall be the same 

as provided by Article V hereof. 

ARTICLE VIII-WITHDRAwAL 

As is provided by Article IX of the Code upon thirty (30) days' 

notice to Basic Code Authority and to the Administrator, this Subdivision may, upon the affirmative vote of not less than two-thirds 

of the employers within this Subdivision, withdraw from the jurisdiction of the Basic Code Authority. The eligibility requirements, 

methods and effect of such voting shaJl 'he the same as provided by 

Article V hereof. After and in the event such withdrawal i. accomplished, this Supplemental Code, together with the provisions 

of the Code, shall become and be the sole Code governing this Subdivision, and _Code Authority shall, for this Subdivision, become 

and be the sole Code Authority, and shall perform all the functions 

with respect thereto, including the functions now imposed upon 

the Ba ic Code Authority. 

ARTICLE IX-ThfoNOPOLIES 

Applicant imposes and shall impose no inequitable restrictions 

on membership therein. The Supplemental Code presented by it 

is not de igned to promote monopoly and shall not be so construed 

or applied as to oppress or eliminate small enterprises or discriminate against them, and is designed to effectuate the policy of the Act. 

ARTICLE X-EFFECTIVE DATE 

This Supplemental Code hall become effective and binding on 

all persons engaged in the Subdivision on the eleventh day after 

its approval by the President and shall not be otherwise effective. 

Approved Co(le No. 347-Supplement No. 4 

Registry No. 1502-03. 

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